Remittances reach $65-M in 1999

Nonresident workers in the CNMI have remitted more than $65 million in 1999, up by at least $7 million from the figures registered during the previous year, government records showed.

Northern Marianas-based guest workers sent out more than $58 million in 1998, about $6 million higher than the 1997 tally of $52.4 million, showing an increasing trend despite sharp reduction in the number of foreign labor in the islands.

A report prepared by the Department of Commerce noted that remittance by Filipino workers in the islands declined in 1999 compared with the previous year level of $49 million to $45.4 million.

In 1997, overseas contract Filipino workers remitted $48.3 million to the Philippines.

The government has also recorded an increase in the total amount of money sent by Chinese workers, who are mainly concentrated in the garment industry, to their relatives in China.

At present, there are three remittance companies that cater primarily to Chinese workers — Far East Financial Company, Micronesia International Jewelry and Universal Group Development Inc.

According to the banking division of the commerce department, Chinese workers in the CNMI have remitted close to $20 million to the People’s Republic of China last year.

Government reports indicated that remittances to the Philippines have been on a steady upward trend since 1993, except in 1997 and in 1999 which registered a slight drop compared with the year ago tally.

Filipinos remitted $37.8 million in 1993 which rose to $39 million the following year. The figure went up to $44.4 million in 1995 and to $48.6 million in 1996.

Analysts said the slight drop in remittances in 1997 may be attributed to the dramatic depreciation of the Philippine peso (PhP) against the US dollar since 1997 from PhP28 per $1 to more than PhP40 as against the dollar.

They said the depreciation of the Philippine currency against the dollar has provided more strength to a significant number of Filipino workers, who normally send a fixed amount of money in peso, to remit fewer dollars.

For example, a worker who sends PhP10,000 a month would have to cough out more than $357 at an average exchange rate of PhP28 per $1, while the amount in dollar had been virtually slashed to as low as $264 at an average exchange rate of PhP38 against the dollar.

However, the sharp reduction in the total amount of remittances by Filipino workers reflected dramatic job losses in 1999 when several tour-related businesses cut the number of their workers while at least 2,000 other establishments ran bankrupt between 1997 and 1999.

Due to the Asian currency crisis, visitor arrivals to the CNMI dipped resulting to the sharp reduction in the number of foreign workers in the Northern Marianas from about 40,000 before 1997 to less than 30,000 this year.

Despite this, the CNMI continues to be an oblivious home to a flourishing money-transfer industry, characterized by an exciting trend — when a company folds up, a new establishment contiguously emerges.

In 1998, one remittance company — Prince Enterprises — filed for bankruptcy and eventually closed shop.

That same year, however, the Banking and Insurance Division of the Department of Commerce issued business licenses to two remittance companies — one catering primarily to Chinese and the other to Filipino workers.

New Century Development Inc., or the Far East Finance and the Philippine National Bank, which holds a regional office on Guam, were granted their respective licenses to conduct money-transfer business that year.

The issuance of these companies’ permits to operate brings to 10 the total number of door-to-door remittance establishments currently operating in the CNMI.

Last year, another remittance company catering to Filipino workers went bankrupt, but its slot was immediately replaced by a new company — Asia-Pacific Inc., displaying an unwavering money-transfer industry in the islands.